Answer: in a traditional economy, decisions are based on habit and custom
Explanation:
<span>A german firm raising capital by selling stock through the london stock exchange is an example of transnational financing.
Transnational financing occurs when a firm goes to another country to raise capital through the issue of stocks and bonds.
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Answer:
The answer is letter C.
Explanation:
The correct statement is If M and W merge, then the merged firm MW should have a WACC that is a simple average of M's and W's WACCs.
Answer: 8%
Explanation:
The expected return is a weighted average of the returns given the probability of certain states of the economy:
= (Prob. of boom * return if boom) + (Prob. of normal * return if normal) + (Prob. of weak * return if weak)
= (20% * 35%) + (50% * 14%) + (30% * -20%)
= 0.07 + 0.07 - 0.06
= 8%
Answer:
It eliminated the need for fixed costs.
Explanation:
